It’s not uncommon to hear that Canadians are financially ill-prepared for retirement and, with a large cohort of baby boomers reaching retirement age, it’s an issue that is likely to take on increasing importance.
Inspired by a conversation on the golf course years ago, about a retiree who couldn’t afford the fees to go out on the green, John Fedyna founded Spring Resorts Universal. The new company is now rolling out a unique condo concept that Fedyna believes will confront this challenge and be the first of its kind in the world.
Richmond Springs Retirement Resort will be built in Richmond Hill, Ont., on Elgin Mills Road, east of Bayview Avenue. Targeting the 50-plus age group, the 900-unit development is designed to cater to active retirees.
“Here we are in the most affluent society the world has ever seen and our seniors are falling through the cracks,” says Fedyna. “Richmond Springs offers, through strength in numbers, a superior alternative to reverse mortgages without compromising quality of life.”
Ownership will be established through equity participation. This essentially means the equivalent of first and last month’s rent serves as the down payment, with monthly payments increasing a resident’s percentage of ownership. When it’s time for an owner to sell their unit at the end of the term, the resident will receive fair market value for it, Fedyna says. Payout will occur over five years to prevent speculators from purchasing. Suites will range in price from $120,000 to more than $400,000.
Not-for-profit construction will reduce building costs by 36 per cent. This is one of several measures that will enable owners to save more for the likely later expense of having to move into an assisted care facility. Residents may also opt into an insurance program in anticipation of this eventual cost.
As in standard condominiums, Richmond Springs Retirement Resort will be managed by committees that the residents have elected. Residents will be encouraged to start organizing once construction begins. The franchise will be transferred from Universal Spring Resorts to the residents once they’ve moved in, Fedyna says. The developer adds that he will ensure the administration required for cleaning, maintenance and operations is in place before this occurs.
It’s estimated that monthly maintenance fees will be 30 cents per square foot, which will work out to approximately $130 per month for a small one-bedroom suite.
Fedyna’s ‘unretirement’ concept is informed by studies from the University of Toronto on aging and health, happiness and longevity. To that end, the resort is built on four pillars: financial, emotional, intellectual/creative and physical.
There will be employment opportunities on-site in areas such as culinary and maintenance services. There will also be a talent exchange economy; residents will be able to use their expertise to help others and, in doing so, earn credits toward activities and services that normally come with a fee. Fedyna expects this to contribute to residents’ savings during their time living at the resort.
The resort-style living is meant to eliminate the need for retirees to travel south in winter, keeping them close to family and friends. The facilities will include a dining area, enclosed mall, fitness club and greenhouse for year-round gardening. The site will also feature two hockey arenas, two soccer fields and seven baseball diamonds.
The development is expected to be built in 2014, with move-in slated for 2015.
Fedyna plans to take the concept to locations around the world. He has already approached Toronto Mayor Rob Ford, who referred him to the Toronto Office of Partnerships, about bringing the model into the city.
Michelle Ervin is the editor of CondoBusiness magazine.
